Warner Music Group (WMG) is reportedly exploring a partnership with Netflix (NFLX) to create movies and documentaries centered on the label’s artists and songs. According to Bloomberg, the two companies are nearing a deal and could sign an agreement soon. The collaboration aims to bring popular music to the screen, giving fans fresh ways to engage with their favorite performers.
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Warner Music Targets Strategic Shift
The partnership marks a strategic shift for Warner Music, which shut down its in-house film and TV division earlier this year to cut costs. The company is now seeking to outsource those projects, according to sources.
Moreover, the deal may also be influenced by the recent success of pop star Taylor Swift’s companion film titled Taylor Swift: The Official Release Party of a Showgirl. The movie was distributed by AMC Theatres (AMC) and earned over $50 million worldwide during its limited three-day run.
Having said that, Warner Music has a strong collection of songs from legendary artists like Ed Sheeran, Madonna, Fleetwood Mac, and Prince. Notably, Robert Kyncl, CEO of Warner Music stated that these stories are “incredible, and haven’t been told.” He added that partnering with Netflix can bring them to life worldwide, which makes a lot of sense.
For Netflix, artist-focused movies and shows could provide a lucrative addition to its catalog, helping the streaming giant explore new ways to grow its already strong subscriber base.
Warner Music’s Revenue Growth
Warner Music’s Q3 performance, with total revenue up 7% across Recorded Music and Music Publishing, underscores the company’s growing focus on leveraging its music catalog. This financial strength could support initiatives like the Netflix partnership to bring artist-driven films and documentaries to audiences worldwide. Below is a screenshot showing Warner Music’s revenue distribution across its business segments.
However, the company’s financials also reflect challenges like declining margins. To tackle that, Warner Music announced plans to cut jobs and reduce costs by $300 million in July 2025. At the same time, the company revealed a partnership with Bain Capital to invest up to $1.2 billion in iconic music catalogs.
Is Warner Music Group a Good Stock to Buy?
Turning to Wall Street, WMG stock carries a Moderate Buy consensus rating, based on nine Buys, seven Holds, and one Sell assigned over the last three months. Moreover, the average Warner Music stock price target of $36.31 implies an 11.21% upside potential from current levels.
Year-to-date, WMG stock gained 5.32%.
